Specialty Foods announced that its affiliated non-operating holding companies today filed Chapter 11 petitions in the U.S. Bankruptcy Court in Delaware. The company said its operating companies -- Mother's Cake & Cookies, Archway Cookies and Andre- Boudin Bakeries -- are conducting business as usual and will not file for bankruptcy.
Specialty Foods said the filings are part of its previously-announced financial reorganization plan. In June, the company announced that it had reached agreement with its bondholders for the distribution of proceeds from the sale of its remaining businesses. On September 12, 2000, Specialty Foods announced an agreement to sell Mother's and Archway to Parmalat SpA for $250 million. That announcement said completion of the transaction is subject to customary governmental approval and certain conditions related to the financial reorganization of the Specialty Foods parent holding companies.
Specialty Foods said the filings are part of its previously-announced financial reorganization plan. In June, the company announced that it had reached agreement with its bondholders for the distribution of proceeds from the sale of its remaining businesses. On September 12, 2000, Specialty Foods announced an agreement to sell Mother's and Archway to Parmalat SpA for $250 million. That announcement said completion of the transaction is subject to customary governmental approval and certain conditions related to the financial reorganization of the Specialty Foods parent holding companies.
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